Gold Attempts to Regain $1,820 to Kickstart Trading in August

2 min read
03 Aug, 21
Written by Clover4X
Article Highlights:
  • Gold pushed to a session high of $1,820 on Monday, buyers couldn’t sustain the upward move
  • The precious metal performed strongly in July, up 2.5% over the month

Gold Tries to Overcome $1,820, Momentum Fades

Gold staged a modest comeback on the first trading day in August as the price attempted to retake the $1,820 level. The precious metal on Monday pared back some intraday losses that saw price slip to a session low of $1,805 per troy ounce.

Afternoon trading sparked enough upside momentum to bring the price to a daily high of $1,820 as market participants flocked to the safe-haven asset. The upward swing, however, was short-lived and a couple of hours prior to the closing bell, gold’s price gave up the gains and ended the day virtually flat at $1,814, down less than $2, or 0.10% on the day.

While gold had a relatively bumpy start of August trading, several key factors in play could dictate gold’s price swings over the month. On the technical front, the precious metal remains in a two-week consolidation area between $1,790 and $1,830. Gold has tried to break above the upper end of the trading range twice but has fallen short both times.

Economic Events Expected to Influence Gold’s Price

On the economic front, the price of gold is bound for increased volatility on Friday when the July US jobs report is scheduled for release. The new jobs created over the past month would show whether the US economy remains on an upward trajectory or there has been a slowdown in hiring. Both scenarios could spell higher fluctuations in gold’s price.

In the longer term, elevated concerns over the spread of the Delta strain of Covid-19 could push traders and investors to seek safety in gold. Additionally, if higher inflation pressures prove to be more permanent than the Fed expects, market participants could decrease their risk appetite for stocks and rotate to safer alternatives like gold and silver.

Looking back, gold had a relatively strong performance in July. In the 21 trading days of the previous month, gold was up in 14 sessions and ultimately logged a monthly gain of 2.5%, going from an opening price of $1,769 to end the month at $1,813 per troy ounce.

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